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1.1. Interview.

Use these questions as a guide to interview your partner. Add questi­ons of your own.

  1. Why do developing countries need a new multilateral round?

  2. What is the interest of LDCs (least-developed countries) in the WTO?

  1. What can companies and civil society do to show to the entire world that trade and sustainable development are not necessarily at odds?

  2. If inflation is higher in Russia than in countries with which Russia trades, what will likely happen to Russia's exports and imports? Why?

  1. Why did China have the difficulty to enter the WTO?

1.2. Case study.

Read the article and do the exercises.

US Launches GMMrade War

Steve Schijferes, "BBC News"

Trade Wars

* GM — genetically modified.

Under WTO rules, the two parties have 60 days to consult before a tra­de disputes panel is set up.

Ultimately, if the panel rules against the EU, it could impose trade sancti­ons, giving the US the right to impose retaliatory tariffs on EU goods.

Mr. Zoellick told BBC News Online that the US would be seeking "se­veral hundred million dollars" in damages, but that the importance of the case went far beyond the immediate damage to US agriculture.

Developing countries in Africa, Asia, and Latin America were cutting back on research and production of GM-crops, because they w7ere afraid they could not export them to Europe, he said, hurting poor farmers worldwide.

And to support his point, scientists and farmers from developing countri­es joined the press conference to argue for the economic benefits of GM-crops.

Mr. Zoellick denied that the US decision to bring the case had anything to do with the WTO's recent approval of $ 4 bn in EU retaliatory sanctions against the US in another case, involving tax breaks for foreign subsidies of US companies.

However, he appeared to concede that the US had delayed bringing the case in the run-up to the Iraq war, when it was trying to gain EU support for a fresh UN resolution.

World Trade Talks

The US move could also increase the difficulties of reaching a deal on agriculture in the Doha round of global trade talks. Those talks appear stalled ahead of a summit in Cancun, Mexico, in the autumn.

The US and the EU are at loggerheads over how to reform agricultural subsidies to benefit developing countries.

Many of the countries joining in the US action are part of the Cairns group of agricultural exporting nations which has been lobbying the WTO to open agricultural markets. A number of them are now seeking separate free trade agreements with the United States.

Washington has brought a complaint against the European Union for refusing to allow the sale of genetically modified (GM) food or crops, esca­lating trade tensions between the world's two biggest economic blocs. The United States — and twelve other agricultural exporting nations — want the EU to repeal its five-year moratorium on GM-foods, or face trade sanctions under World Trade Organisation (WTO) rules.

US Trade Representative Robert Zoellick said that the US had run out of patience after years of EU procrastination on the issue. "The EU's per­sistent resistance to abiding by its WTO obligations has perpetuated a tra­de barrier unwarranted by the EC's own scientific analysis, which impedes

the global use of a technology that could be of great benefit to farmers and consumers around the world," — he said.

The EU is unlikely to lift the block on GM-food imports, which is wi­dely supported by European consumers, and is also developing tough new labelling regulations which worry US farmers.

EU trade commissioner Pascal Lamy questioned the motives behind the US case, and denied there was a "moratorium" on GM-foods. "The EU re­gulatory system for GM authorisation is in line with WTO rules: it is clear, transparent and non-discriminatory. There is therefore no issue that the WTO needs to examine," — he said.

And EU consumer and green lobby groups vowed to oppose the US de­cision. "If this attempt succeeds, the US will force GM foods onto Europe­an markets regardless of the wishes of consumers," — said Friends of the Earth Policy Director Liana Stupples.

  1. Sum up the arguments for and against imposing trade sanctions.

  2. Make up the speeches of: a) US Trade Representative Robert Zoellick; b) EU trade commissioner Pascal Lamy.

  3. Work in two groups. Group A — representatives of developing countries in Africa, Asia, and Latin America — carries on talks with gro­up B — team of US Trade Representative Robert Zoellick. Discuss the problems of research and production of GM crops.

Appendix A

Tests

Unit 1. Labour Relations

A. Read the article from the CNN Money website and complete the extract with the expressions listed.

called for officials walkout broke off arbitration affects distributed stoppage deal average

Hershey Workers Walk off Job

Nearly 3,000 Hershey Foods Corp. workers walked off the job Fri­day, saying they were upset with a company offer that would increase their health care costs.

The strike at the company's two plants in Hershey... (1) about one-fifth of the work force at the nation's largest candy maker, where negotiations between Hershey and the Chocolate Workers Local 464 ... (2) Wednes­day. No new talks were scheduled.

The company said a labor ... (3) at the two Hershey production plants would not interrupt service to its customers. Hershey Foods has been buil­ding inventory and cash reserves in preparation for a ... (4), analysts said.

Even before the walkout began at 9 a.m., workers began gathering outsi­de the factories and union officials ... (5) signs that read, "Stop the Greed, Share the Wealth."

"The raises they give won't cover the increases in the medical benefits," said Brian Daubert, a production worker at the West Hershey plant.

A ... (6) offered by the company but rejected earlier this month ... (7) worker health insurance payments to increase from 6 percent to 10 per­cent, then 12 percent over four years.

Workers, who receive an ... (8) hourly wage of about $ 18, would get raises of around 2.6 percent to 2.8 percent each year for four years.

The company offered to enter into binding ... (9) Wednesday but the union refused, both sides said.

The labor stoppage at Hershey is the fifth in the 97-year-old candy ma­ker's history. The last strike by members of Chocolate Workers Local 464 was a three-week work stoppage in 1980,... (10) from the union said.

B. After fdling in the gaps read the article once more and decide which of the statements are True and which are False and write T for True and F for False.

  1. Hershey wrorkers walked off the job because the company wanted to increase their bonus pay.

  2. The negotiations between the administration and unions were a fa­ilure.

  3. The strike would be a hard blow to customers' service.

  4. The raises are too low to cover the increases in the medical benefits.

  5. Both sides do not mind entering into binding arbitration.

C. Give English equivalents and make up your own sentences:

  • забастовка, не санкционированная профсоюзом;

  • закрытие предпринимателями одного или нескольких предпри­ятий с тем чтобы заставить рабочих и служащих принять навя­зываемые им решения;

  • предупредительная забастовка;

  • участвовать в сидячей забастовке;

  • естественное сокращение рабочей силы.

D. Translate the following sentences into Russian.

  1. Where there was a closed shop agreement an employer could not hire non-union workers.

  2. We feel that salaries should at least keep pace with inflation.

  3. With collective bargaining the unions negotiate on behalf of groups of workers, not individuals.

  4. If they work to rule the job might not be completed on time.

  5. Union members were asked not to cross the picket line.

E. Render the extract from the article using the active vocabulary.

По данным профсоюза, на начало забастовки в ней участвовало 50 ООО рабочих на 20 предприятиях. Глава профсоюза IG Metall Клаус Цвикель первоначально хотел добиться повышения заработной пла­ты для всех 3,6 млн рабочих немецкой металлургической и электрон­ной промышленности на 6,5 %. В последний момент профсоюз дал по­нять, что готов к заключению соглашения, в котором перед запятой будет стоять четверка. До сих пор работодатели предлагали 3,3 %.

Во вторник забастовка в Баден-Вюртемберге продолжится. Профсо­юз хочет включить в борьбу такие предприятия, как Varta, Bosch-Siemens, Alstom, ABB и Alcan. Распространение забастовочного движения на Берлин и Бранденбург не должно произойти до начала будущей недели.

В понедельник не наблюдалось никаких симптомов скорого окон­чания забастовки, хотя Цвикель и подтвердил, что он готов к перего­ворам. Тем не менее, Ханс Вернер Буш, генеральный директор объ­единенного союза работодателей-металлургов, скептически относится к возможности достижения соглашения на новом раунде переговоров.

Unit 2. Production and Costs

A. Read the article from the CNN Money website and complete it with the expressions listed.

delivery evaluation safeguards pursue